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Suppose that the current one-year zero-coupon rate is 1.5% and that the expected one-year rate during each of the subsequent 4 years is 2.0%, 2.5%,

Suppose that the current one-year zero-coupon rate is 1.5% and that the expected one-year rate during each of the subsequent 4 years is 2.0%, 2.5%, 3.0%, and 3.5%. Under the pure expectations theory, what is the current 5-year zero-coupon interest rate?

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